Fostering Innovative Work Behaviour in SMEs: Exploring Employees’ Intellectual Agility and Knowledge Management Practices

Purpose: This study aims to investigate the mediational mechanisms and conditions through which Employees’ Intellectual Agility (EIA) contributes to positive outcomes in Innovative Work Behaviour (IWB) at the employee level within Small and Medium-sized Enterprises (SMEs) in Pakistan. Design/methodology/approach: The research population comprises employees working in manufacturing SMEs, with a sample size of 365 respondents selected through a simple random sampling technique. Findings: The results of this study demonstrate that EIA fosters IWB by way of mediating the enhancement of Creative Self-efficacy (CSE). Notably, Knowledge Management Practices (KMPs) emerge as a crucial moderating factor in these relationships. The favorable impact of EIA on IWB may diminish when KMPs are at lower levels. These findings provide empirical support for the principles of Bandura’s theory of social learning (1977). Practical implications: The findings of this research offer practical implications for organisations. To stimulate CSE and IWB among employees, it is advisable for organisations to actively encourage and nurture EIA. Furthermore, it is essential to recognise that KMPs, when combined with intellectual agility, play a vital role in cultivating creative work behaviour in employees. Originality/value: This study represents one of the initial research endeavours that employs Social Learning Theory (SLT) to elucidate the indirect relationship between EIA and IWB, mediated by CSE. The authors underscore the uniqueness of the study’s findings, suggesting that they have the potential to pave the way for new avenues of research in the domain of EIA.